Keysight Technologies, Inc. (KEYS)

Price$362.15Cached quoteAs of 2026-09-26 04:39 UTC

AI: Overvalued

Price checkThe latest verified price still demands unusually strong growth for several years.

Keysight closed at $319.45 on August 19, the latest completed session before the stated August 20, 8:28 a.m. Eastern valuation time. About 170.3 million shares were outstanding, implying roughly $54.4 billion of equity value. Management's fiscal 2026 adjusted earnings outlook implies about $11.45-$11.51 per share, so the price is about 27.8 times those earnings. Annualizing nine-month free cash flow gives roughly $1.7 billion, only a 3.1% cash yield. That valuation leaves limited room for growth to normalize.

Big pictureA powerful recovery is underway, but Keysight has shown meaningful demand cycles before.

Revenue fell from $5.46 billion in fiscal 2023 to $4.98 billion in 2024, then recovered to $5.38 billion in 2025. The rebound accelerated sharply in 2026: nine-month revenue reached $5.16 billion, up about 31%, while nine-month net income rose to $1.03 billion from $617 million. Third-quarter commercial communications revenue jumped 56%. The earlier downturn shows customers can postpone expensive design and test purchases, so today's rapid growth should not automatically be treated as a permanent rate.

Business strengthCash generation and finances are strong, while buybacks have more than offset dilution.

Nine-month operating cash flow reached $1.38 billion, and free cash flow—cash left after running and investing in the business—was $1.28 billion, up from $1.09 billion. At July 31, Keysight held $2.61 billion of cash against $2.52 billion of debt, leaving roughly neutral net debt and ample liquidity. It spent $520 million repurchasing shares while recording $181 million of stock compensation; estimated outstanding shares fell from about 171.2 million in October to 170.3 million. Goodwill remains sizable at $3.46 billion.

What could change the storySustained rapid cash growth could justify the price; ordinary growth would not.

The bull case is unusually strong current momentum: third-quarter revenue rose 36%, orders exceeded $2 billion for a second consecutive record quarter, and management guided fourth-quarter revenue to about $1.94 billion, roughly 37% growth. Using about $1.7 billion of annualized free cash flow, a simplified valuation near today's market value requires roughly 16% annual cash growth for five years, followed by 3.5% long-term growth at a 9% required return. If growth instead settles near historical mid-single-digit rates, downside from valuation compression becomes material.

AI: News

Record third quarterKeysight beat expectations sharply and raised its outlook, but investors still sold the shares.

On August 18, 2026, Keysight reported $1.85 billion of quarterly revenue, up 36% year over year, and $3.07 of adjusted earnings per share. Both exceeded published analyst expectations of roughly $1.75 billion and $2.48. Management guided the next quarter to $1.93-$1.95 billion of revenue and $3.34-$3.40 of adjusted earnings per share. Shares initially rose more than 3% after hours, then fell 6.3% to $319.45 on August 19; the reason for that reversal cannot be established from timing alone.

Record second quarterMay results showed demand accelerating before the latest quarter confirmed the recovery.

On May 19, 2026, Keysight reported record second-quarter results, including $1.72 billion of revenue versus $1.31 billion a year earlier and $349 million of reported net income. Orders exceeded $2 billion, and management raised its full-year outlook. The company then forecast third-quarter revenue of $1.73-$1.75 billion; actual revenue later reached $1.85 billion. This sequence matters because it shows the current growth surge was supported by orders and subsequent sales, rather than being a one-quarter accounting fluctuation.

VPIphotonics acquisitionKeysight expanded its photonics software offering as artificial-intelligence data centers require faster optical links.

Keysight completed its acquisition of VPIphotonics on June 9, 2026, adding system-level photonic simulation to its design software portfolio. The strategic link is concrete: artificial-intelligence infrastructure increasingly depends on silicon photonics and high-speed optical connections, and Keysight can now model more of that design process before physical testing. The purchase price was not disclosed in the announcement, limiting direct return-on-investment analysis. Its importance therefore depends on future software adoption, cross-selling, and whether acquired technology produces durable incremental cash flow.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$5.38B	$4.98B	$5.46B	$5.42B	$4.94B	$4.22B	$4.30B	$3.88B	$3.19B	$2.92B	$2.86B	$2.93B	$2.89B
Gross profit	$3.34B	$3.13B	$3.53B	$3.45B	$3.07B	$2.53B	$2.53B	$2.11B	$1.70B	$1.62B	$1.59B	$1.62B	$1.62B
Gross margin	62.08%	62.92%	64.64%	63.65%	62.11%	60.01%	58.89%	54.44%	53.37%	55.65%	55.57%	55.23%	56.20%
Research & development	$1.01B	$919.0M	$882.0M	$841.0M	$811.0M	$715.0M	$688.0M	$624.0M	$507.0M	$425.0M	$387.0M	$361.0M	$375.0M
Operating expenses	$4.50B	$4.15B	$4.11B	$4.09B	$3.86B	$3.46B	$3.59B	$4.27B	$3.04B	$2.51B	$2.42B	$2.46B	$2.39B
Operating income	$876.0M	$833.0M	$1.36B	$1.33B	$1.08B	$765.0M	$711.0M	−$394.0M	$148.0M	$406.0M	$431.0M	$469.0M	$496.0M
Operating margin	16.30%	16.73%	24.85%	24.61%	21.86%	18.12%	16.52%	−10.16%	4.64%	13.91%	15.09%	15.99%	17.17%
EBITDA	$1.14B	$1.10B	$1.57B	$1.55B	$1.37B	$1.09B	$1.02B	−$87.0M	$373.0M	$540.0M	$530.0M	$553.0M	$573.0M
EBITDA margin	21.28%	22.03%	28.70%	28.67%	27.75%	25.80%	23.63%	−2.24%	11.70%	18.51%	18.56%	18.85%	19.84%
Net income	$850.0M	$614.0M	$1.06B	$1.12B	$894.0M	$627.0M	$621.0M	$165.0M	$102.0M	$335.0M	$513.0M	$392.0M	$457.0M
Net profit margin	15.81%	12.33%	19.34%	20.74%	18.09%	14.85%	14.43%	4.25%	3.20%	11.48%	17.96%	13.37%	15.82%
Basic EPSper basic share	$4.93	$3.53	$5.95	$6.23	$4.84	$3.35	$3.31	$0.88	$0.57	$1.97	$3.04	$2.35	$2.74
Diluted EPSper diluted share	$4.91	$3.51	$5.91	$6.18	$4.78	$3.31	$3.25	$0.86	$0.56	$1.95	$3.00	$2.35	$2.74

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈11.75%of listed shares

BlackRock, Inc.20.08M shares · Jun 30, 2026

View holders

Top 20 reported holders of KEYS
Holder	% owned
BlackRock, Inc.	≈11.75%20.08M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈6.55%11.19M shares
PRICE T ROWE ASSOCIATES INC /MD/	≈5.63%9.61M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.04%8.62M shares
STATE STREET CORP	≈4.84%8.27M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.80%4.78M shares
Capital World Investors	≈2.01%3.43M shares
T. Rowe Price Investment Management, Inc.	≈1.53%2.62M shares
FMR LLC	≈1.39%2.38M shares
Invesco Ltd.	≈1.37%2.33M shares
NORGES BANK	≈1.28%2.19M shares
Amundi	≈1.22%2.08M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	≈1.20%2.06M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	≈1.17%2M shares
NORTHERN TRUST CORP	≈1.14%1.95M shares
MORGAN STANLEY	≈1.10%1.88M shares
Allspring Global Investments Holdings, LLC	≈0.93%1.6M shares
VICTORY CAPITAL MANAGEMENT INC	≈0.82%1.4M shares
Legal & General Group Plc	≈0.78%1.33M shares
AMERIPRISE FINANCIAL INC	≈0.76%1.3M shares

Percentages use 170.9M shares of this listed class outstanding on May 29, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$44.5K disclosed value

Sells (SEC code S)39$53.03M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 25, 2026Form 4 · 10b5-1	Dhanasekaran SatishPresident and CEO	SellCommon Stock	507	$361.32	$183.2K	121.4K
Jun 2, 2026Form 4	CULLEN JAMESDirector	SellCommon Stock	3.0K	$346.58	$1.04M	21.8K
Mar 30, 2026Form 4	HAMADA RICHARD PDirector	SellCommon Stock	870	$275.78	$239.9K	42.2K
Mar 24, 2026Form 4	Li Jeffrey KSVP and Secretary	SellCommon Stock	2.0K	$297.19	$594.4K	34.5K
Mar 24, 2026Form 4	Dhanasekaran SatishPresident and CEO	SellCommon Stock	1.7K	$300.00	$500.1K	122.4K

Review ownership filings at SEC.gov ↗

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Keysight Technologies, Inc. (KEYS)

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